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Cap Change

Thursday, December 30, 2010 - 7:47 AMPelican State Credit Union - Details
Effective 2/1/11, cap is going down from $30K to $20K.  Rate stays the same.  Better than I expected, but for how long...
5
mariafaltermariafalter57 posts since
Jun 6, 2010
Rep Points: 222
1. Thursday, December 30, 2010 - 8:32 AM
Did you find out via CSR?  Thanks.
2
51hh51hh1,460 posts since
Jan 16, 2010
Rep Points: 6,348
2. Thursday, December 30, 2010 - 9:03 AM
I received an email from the CU.
1
mariafaltermariafalter57 posts since
Jun 6, 2010
Rep Points: 222
3. Thursday, December 30, 2010 - 9:10 AM
Only 3 e-Xtra (RCA) accounts are permitted per accountholder so it might be smart to open them now even if you cannot fund them fully.  That may be the next shoe to drop.
2
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
4. Monday, February 14, 2011 - 3:21 PM
Just received an email from the Pelican State CU.  Effective 2/14, 2 weeks after a cap reduction, the rate is going down to 4.01% on balances up to $20K.
2
mariafaltermariafalter57 posts since
Jun 6, 2010
Rep Points: 222
5. Monday, February 14, 2011 - 3:40 PM
The Email I received states the rate change is retroactive to 2/1:

"We have had an overwhelming response to the e-Xtra Bonus Checking Account since it first launched in June of 2008. We are proud to provide a checking product that yields such high dividends despite the economic conditions.

Pelican is managed conservatively and maintains a balanced portfolio. From time to time, changes must be made to continue on our path of success and handling your funds responsibly. Thus, we must reduce the e-Xtra Bonus Checking rate to 4.01%* APY effective February 14, 2011. This new rate applies to all funds earning dividends from the beginning of the dividend cycle, February 1, 2011.

The monthly dividend rate decreased from 0.50% to 0.25%. The bonus dividend rate decreased from 4.90% to 3.94%.

We believe that this is still a very competitive rate that few financial institutions would be able to match or exceed. It is a great alternative to a basic free checking accounts.

You are a valued member of Pelican State Credit Union and we appreciate your loyalty. We encourage you to contact us with any questions or concerns you may have regarding this account or any other products and services you take advantage of with Pelican."
2
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
6. Monday, February 14, 2011 - 3:57 PM
I received the same e-mail, but I understood it differently.  Rate changes effective 2/14.  It applies to balances earning dividends from 2/1, e.g $20K.

Thus, we must reduce the e-Xtra Bonus Checking rate to 4.01%* APY effective February 14, 2011. This new rate applies to all funds earning dividends from the beginning of the dividend cycle, February 1, 2011.
1
mariafaltermariafalter57 posts since
Jun 6, 2010
Rep Points: 222
7. Monday, February 14, 2011 - 4:50 PM
I can understand that interpretation of the letter, and apparently a number of customers have called in with questions on this announcement.  Unfortunately, the CSR just confirmed that the rate change is effective as of 2/1.  The date of 2/14 (today's date) is mentioned in the letter because that is when the new rate was determined. 

Good customer service, yes.  Good rates (albeit lowered), yes.  Clear, unequivocal communication?  Not so much. 

 
1
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
8. Monday, February 14, 2011 - 5:34 PM
I talked with a CSR today who said that  ---the rate change is effective TODAY.
1
pdxmalepdxmale93 posts since
Jul 11, 2010
Rep Points: 269
9. Monday, February 14, 2011 - 5:57 PM
Yes, still a good rate.
2
51hh51hh1,460 posts since
Jan 16, 2010
Rep Points: 6,348
10. Monday, February 14, 2011 - 6:07 PM
I repeat:  clear unequivocal communication?  Not so much.   The issue of inconsistent answers from different CSRs is not unique to Pelican.    While rates can change at any time, it would be unusual to have a rate change mid-cycle.  That is why I give weight to the 2/1 date. 

Let's wait and see if there is further clarification tomorrow.   
 

 
1
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
11. Tuesday, February 15, 2011 - 7:30 AM
I talked with a CSR today who said that  ---the rate change is effective TODAY.
It makes a bit more sense this way; going retrospective (to 2/1/11) on the rate change is never a customer-friendly action.  It is not a fair practice, either. 

Add Note: PB was correct (unfortunately:-)).
2
51hh51hh1,460 posts since
Jan 16, 2010
Rep Points: 6,348
12. Tuesday, February 15, 2011 - 5:31 PM
I wonder what would happen if enough disgruntled credit union members wrote to the CEO, saying something like:

"By recently lowering the e-Xtra Bonus Checking cap to $20K and by stating that its 4.01% APY rate change (a huge 1% rate drop!) was effective 2/14, yet making that change retroactive to 2/1, unless you are in imminent financial difficulties (in which case you should disclose this to all credit union members), you are providing a grave disservice to your members.  Please either make the rate change effective 2/14 and pro-rate it appropriately, or, as many other banks and credit unions do, make any rate changes effective at the beginning of the next statement cycle.  Thank you for your consideration of this reqest.

Sincerely,

Credit Union Member"
2
glxpassglxpass38 posts since
May 2, 2010
Rep Points: 240
13. Wednesday, February 16, 2011 - 8:25 AM
I have had two credit unions do this to me, except that they changed the rate at the end of the cycle and I found out when my statement cut that it had dropped retroactively.  I check rates at least weekly, so I would have caught it if they'd cut it earlier.  I think it is slimy, but no amount of complaining has been able to change it.  I guess I'm just learning which places to avoid.  I'm very sad to hear that is becoming more pervasive and I hope that banks don't start it also.
2
edlisaledlisal13 posts since
Sep 8, 2010
Rep Points: 37
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